Study of Extensive Livestock Production Systems

ASIAN DEVELOPMENT BANK

TAR:MON 29621

TECHNICAL ASSISTANCE TO MONGOLIA FOR THE STUDY OF EXTENSIVE LIVESTOCK PRODUCTION SYSTEMS

July 1996

2 CURRENCY EQUIVALENTS (as of 12 June 1996)

Currency Unit Tug1.00 $1.00

= =

Tugrik (Tug) $0.00192 Tug521

(i)

The tugrik was devalued from Tug150 to Tug394 per dollar on 28 May 1993 and its value is now determined using a unified floating exchange rate.

(ii)

For the purpose of calculations in this Report, the rate of $1.00 to Tug520 has been used. This was the rate prevailing when the Report was prepared.

ABBREVIATIONS

ASPL MNE MOFA SEFF TA

-

Agriculture Sector Program Loan Ministry of Nature and Environment Ministry of Food and Agriculture State Emergency Fodder Fund Technical Assistance

NOTES

(i) (ii)

The fiscal year (FY) of the Government ends on 31 December.

In this Report, “$” refers to US dollars.

This report was prepared by O. Serrat.

I. INTRODUCTION 1.

During the Bank’s Fact-finding Mission to Mongolia in May 1995 for the Agriculture Sector Program Loan (ASPL),1 the Government requested technical assistance (TA) for a study of extensive livestock production systems to examine the sustainability of the extensive livestock sector following record increases in the number of animals.2 This TA Report is based on the findings of the Mission and the understandings reached in August 1995 with the Government on the objective, scope, financing plan, and implementation arrangements of the TA. The TA is included in the Bank's 1996 TA program for Mongolia.3 II. BACKGROUND AND RATIONALE 2.

Mongolia occupies an area of 1.57 million square kilometers and is populated by 2.2 million people, 55 percent of whom live in the rural areas. Some 80 percent of the land can be used for a range of agricultural activities, but only 1.3 million hectares are arable, mainly in the northern central region. The climate is continental, with short growing seasons; mean annual temperatures between -6°C and +4°C (with extremes of -40°C and +30°C); low precipitation; and high evapotranspiration. The climate is a major constraint to agricultural development and contributes to the relative fragility of the natural ecosystems.

3.

Although only a small proportion of the land area is suitable for arable farming, Mongolia's vast rangelands, its climate, and its limited population naturally favor the development of extensive animal husbandry. In 1994, the national herd stood at about 26.8 million, the largest for 30 years. This included 13.8 million sheep, 7.2 million goats, 3.0 million cattle, 2.4 million horses, and 0.4 million camels. Preliminary estimates for 1995 indicate a further increase in the herd to about 27.8 million. The largest percentage increase has been in the goat herd, reflecting the market demand for cashmere, followed by cattle and horses. In 1994, the percentage increases over the previous year were 19 percent for goats, 10 percent for cattle and 10 percent for horses.

Over the period 1991-1994, the goat herd increased by 39 percent.

4.

Animal herding is the mainstay of the Mongolian economy. It contributes more than 80 percent of agricultural output, and directly or indirectly provides employment for much of the population through forward and backward economic linkages. The share of animal products in exports has decreased but still accounted for 28 percent in 1994 ($90 million) compared with 36 percent in the two previous years ($139 million in 1992 and $137 million in 1993). In 1994, major exports of animal products comprised cashmere ($27 million); sheep and camel wool ($21 million); hides and skins ($18 million); and meat products ($8 million).

5.

After independence in 1921, Mongolia adopted a socialist model of development and undertook the collectivization of its rural economy. By 1959, traditional pastoral systems had been transformed into a system of 255 large livestock collectives (negdel) and, by 1991, 73 State farms existed. Camels, horses, cattle, sheep, and goats were reared on the negdel and nontraditional livestock such as pigs and poultry were reared on State farms. The State procured milk, meat, wool, and skins from the negdel at fixed prices, and herders received a wage. The number of livestock that individuals were allowed to own was limited.

1

2

3

Loan No. 1409-MON: Agriculture Sector Program, for $35 million, approved on 5 December 1995. TA No. 2457MON: Institutional Strengthening in the Agricultural Sector; and TA No. 2458-MON: Strengthening Land Use Policies were approved together with the loan for $800,000 and $580,000, respectively.

Extensive animal husbandry involves migration along predetermined routes for pasturing and watering stock yearround. Labor is the main input, and feed is obtained from rangelands.

The TA first appeared in ADB Business Opportunities in September 1995.

2

6.

Since late 1990, the Government has implemented a series of comprehensive reforms aimed at dismantling the centrally planned system and introducing a market-based economy.

Under the Privatization Law of 1991, the negdel were broken up into new, smaller companies or cooperative organizations (khorshoo) largely owned by former workers. By late 1994, more than 90 percent of the national herd had been privatized.

7.

Rapid decollectivization has resulted in significant and sudden changes. At the macroeconomic level, the subsidized provision of goods and services through the collectives had by 1991 become untenable as a result of economic liberalization and the loss of about a third of national income previously obtained through subsidies and credits from the former Soviet Union.

Moreover, the necessary degree of institutional stability required for sustainable management of rangelands is now absent. Herders are adopting livestock management systems that have neither the controls of the negdel nor the community controls of traditional pastoral systems. Controversy also surrounds the Land Law of 1994. The new land legislation provides for the transfer into private hands of arable and hay land (which make up less than 1 percent of the land area) as well as urban and peri-urban land for development, but specifically excludes rangelands from private ownership. This will remain in State hands as common land under the jurisdiction of the relevant local authorities at provincial and district levels. This means that conflict over access to, and control of, these commons is likely to increase in the near future and may call for regulatory action.

8.

The sustainable management of natural resources under conditions of relative scarcity depends on an understanding of the forces at play. At present, however, little is known about how the extensive livestock production systems are adapting to a market-based economy. One consequence is soil erosion. There is evidence of overgrazing, resulting in declining productivity of rangelands and impoverishment of their species composition.4 The arid and semiarid zones are particularly affected. Elsewhere, ecological sustainability may be further threatened as herders make preemptive moves to capture the best grazing first because of the uncertainties of transition and the ambiguity of the new land legislation. Other important issues to be examined relate to social welfare, pasture management, fodder production, the organization of production and marketing, pricing, access to credit, risk management, increased demand for animal products, and the type of institutional support needed from the Government.

9.

The Bank’s medium-term operational strategy for Mongolia aims at facilitating the transition of the economy to one based on market-driven principles. In the agriculture sector, the focus is on establishing the basis for long-term economic growth consistent with Mongolia’s natural resource base and comparative economic advantages. The Bank is concentrating on improving the agriculture sector’s policy and institutional environment and the credit situation. The TA is consistent with the Bank’s medium-term operational strategy for Mongolia. It will finance a study of direct relevance to the Government’s continuing reforms in the agriculture sector and of special importance to policy and institutional development under the ASPL. The results of the TA should also contribute to improved natural resource management.

4

Overgrazing results when livestock density becomes excessive. This can occur if (i) herd sizes are allowed to grow too large during wet years to be sustained by the limited pasture growth in dry years; (ii) the area available for grazing decreases as nomads are displaced by farmers growing crops on lands previously used for grazing; (iii) livestock become concentrated around villages by nomad resettlement schemes; and/or (iv) traditional controls on the grazing of rangelands break down.

3 III. THE TECHNICAL ASSISTANCE A.

Objective

10.

The overall sector goal to which the TA will contribute is sustainable management of extensive livestock production systems in Mongolia. The immediate objective of the TA is to assist the Government in the formulation of policies and strategies for sustainable management and the preparation of an action plan for the extensive livestock sector.

B.

Scope

11.

The scope of the TA includes (i) establishing an information base on extensive livestock sector capacities, focusing on assessing the carrying capacity of rangelands and delineating the salient characteristics of the sector; (ii) analyzing constraints and opportunities in the livestock sector; (iii) defining a policy framework for sustainable management of livestock resources; and (iv) detailing a strategy for policy framework implementation. The resulting strategy will be based on a study of technical, socioeconomic, environmental, and marketing issues and will relate to policy and institutional improvements, simple investments, and TA requirements to ensure the sustainability of the extensive livestock sector. The Project Framework for the TA is presented in Appendix 1.

12.

Support for the extensive livestock sector can begin only after a thorough analysis of agroecological systems and the socioeconomic, cultural, and institutional setting. In the context of the outputs from the TA, the investigation underpinning sector analysis will relate to (i) the institutional framework governing the sector; (ii) the environmental impact of livestock production; (iii) the socioeconomic aspects of livestock production, including the role of women; (iv) livestock and rangeland management practices; (v) the use of livestock and livestock products; (vi) the role of prices in production and marketing; (vii) physical constraints to livestock production, movement, and marketing; (viii) the availability of technical support services; (ix) the legislative and regulatory framework within which livestock and rangeland management practices are conducted; (x) approaches for creating or strengthening self-regulating, locally based rangeland management systems that correspond to direct-user groups; and (xi) rangeland improvement techniques.

13.

The TA will concentrate on two provinces located in two of Mongolia’s five major agroecological regions.5 The decision to concentrate on agroecological regions was taken because the characteristic features of these regions largely dictate livestock production systems.

One province should be located in a region favoring the development of extensive animal husbandry. The other should be located in a region that is relatively unsuited for rearing livestock but where extensive livestock production systems can nevertheless be found.

5

These are the Hangai-Khuvsgul, Selenge-Onon, Altai, Central and Eastern Steppe, and Gobi Desert regions.

4 C.

Cost Estimates and Financing Plan

14.

The total cost of the TA is estimated at $615,000 equivalent, comprising $483,000 in foreign exchange cost and $132,000 equivalent in local currency cost. The Bank will finance $600,000 to cover the entire foreign exchange cost of $483,000 and $117,000 equivalent of the local currency cost on a grant basis. The Government will contribute the balance of the local currency cost of $15,000 equivalent through the provision of experienced counterpart staff; office space at the Ministry of Food and Agriculture (MOFA); and, in the two provinces selected, administrative and clerical services, and telephone, facsimile and photocopying facilities. Details of the cost estimates and financing plan for the TA are presented in Appendix 2.

D.

Implementation Arrangements

15.

The TA will be implemented by a team of international consultants in association with domestic consultants. The consultants will be selected in accordance with the Bank's Guidelines on the Use of Consultants. Because the technical requirements of the TA are not complex and Bank financing does not exceed $600,000, the Bank’s procedures for simplified technical proposals will apply for the selection of the consultants. It is envisaged that 39 person-months of consulting services will be required, comprising 19 person-months of international consultants and 20 person-months of domestic consultants (comprising 12 person-months of long-term and 8 person-months of short-term consultants). The international consultants will have expertise in the fields of (i) livestock economics; (ii) environmental management (with experience in rangeland management); and (iii) rural sociology (with experience in institutional development and knowledge of pastoral communities). The livestock economist will act as team leader and should have extensive qualifications and experience in similar projects. The long-term domestic consultants will have expertise in the fields of (i) extensive livestock production systems, and (ii) regulatory law. The consultants for this TA will be required to interact with the consultants recruited to carry out the two TAs approved with the ASPL. Terms of reference for the consulting services are presented in Appendix 3.

16.

In addition, short-term domestic consultants with knowledge of specific localities and issues will be recruited by the team leader in consultation with the Bank. The use of short-term domestic consultants will enable the consultants to draw on special expertise as needed and will ensure familiarity with organizational and cultural dynamics.

17.

Because of climatic conditions, the TA will be implemented in two phases over a total period of 12 months and is expected to be completed by the end of August 1997. The first phase of the TA will extend over three months beginning in October 1996. The second phase will extend over five months beginning in April 1997. During the first phase, the consultants will establish the information base on extensive livestock sector capacities, begin analyzing sectoral constraints and opportunities, determine the nature of the inputs and specific terms of reference for the shortterm domestic consultants, and select two provinces from the five major agroecological regions for further study in consultation with the Government and the Bank. To the extent possible, care will be taken to achieve staffing continuity throughout the TA. Because institutions represent the interests of political and social groups, care will also be taken to involve all key institutions, including the Ministry of Finance, National Development Board, Bank of Mongolia, and Ministry of Nature and Environment. During the second phase, the consultants will focus sectoral analysis on the two provinces selected, define a policy framework for sustainable management, and detail a strategy for policy framework implementation.

5 18.

The Executing Agency for the TA will be MOFA. MOFA will assign experienced staff to serve on a full-time basis as counterparts to the consultants. These counterparts will work actively to facilitate TA activities, to ensure that findings from the TA are anchored in a strong sectoral analysis, and to guarantee the close involvement of MOFA. MOFA will also be responsible for interagency coordination and cooperation at the Central and provincial levels, including the nomination of technical personnel to assist the consultants in the two provinces selected.

19.

To catalyze ownership, the advice and active involvement of various groups of stakeholders will be sought throughout the TA. The consultants recruited under the TA will be facilitators and, accordingly, a workshop will be conducted early in the first phase to promote participation at all levels and determine the limits of the study. A second workshop will be conducted towards the end of the second phase to present findings and elicit further feedback.

The two workshops will coincide with, respectively, tripartite meetings for TA inception and completion held among the consultants, the Government, and the Bank. At each workshop, the consultants will provide concise reports for discussion. These will be revised and submitted to the Government and the Bank for approval at the conclusion of each workshop. A final report incorporating comments from the Government, workshop participants, and the Bank will be submitted within one month of the second workshop.

IV. THE PRESIDENT'S DECISION 20.

The President, acting under the authority delegated by the Board, has approved the provision of technical assistance, on a grant basis, to the Government of Mongolia in an amount not exceeding the equivalent of $600,000 for the purpose of the Study of Extensive Livestock Production Systems Project, and hereby reports such action to the Board.

6 PROJECT FRAMEWORK Design Summary

1.

Project Monitoring Mechanisms

Risks/Assumptions

Sector/Area Goal

1.1 Sustainable management of extensive livestock production systems

2.

Targets

º

Optimize extensive livestock production activities on marketdriven principles

-

Central and provincial Government statistics

-

Research program publications

º

Stabilize livestock numbers within the estimated carrying capacity of rangelands

º

Reduce soil erosion caused by overgrazing

º

Establish an information base on the extensive livestock sector

-

Inception and final reports

-

Workshop findings

Analyze constraints and opportunities in the extensive livestock sector

-

TA review missions

-

Tripartite meetings

-

Ministry of Food and Agriculture (MOFA) communications with the Bank

-

Policies and strategies are implemented

-

Soil erosion is not irreversible

-

Technical assistance (TA) outputs are well grounded and practicable

Purpose/Objective

2.1 Assist the Government in the formulation of policies and strategies for sustainable management and the preparation of an action plan for the extensive livestock sector

º

º

Define a policy framework for sustainable management

º

Detail a strategy for policy framework implementation

7

Design Summary

3.

Targets

Project Monitoring Mechanisms

Risks/Assumptions

Project Outputs

3.1 Information base on extensive livestock sector capacities is established

3.2 Extensive livestock sector constraints and opportunities are analyzed

º

º

Delineate the salient characteristics of the extensive livestock sector

º

Identify technical, socioeconomic, environmental, marketing, and other constraints on herders

º

3.3 Policy framework for sustainable management is defined

3.4 Strategy for policy framework implementation is detailed

Assess the carrying capacity of rangelands, the extent of overgrazing, and its impact on livestock productivity and rangeland sustainability in the two provinces selected

º

Identify opportunities for sustainable extensive livestock systems development Review for their efficiency and effectiveness concerned institutions at the national and provincial levels

º

Review for their effectiveness existing policies, laws, decrees, regulations, and circulars

º

Identify stakeholders and assess their roles and interests

º

Identify instruments for sustainability planning

º

Detail a program of policy interventions

-

Inception and final reports

-

Demand for TA output is catalyzed

-

Workshop findings

-

Sense of ownership is achieved at MOFA

-

TA review missions -

-

Tripartite meetings

Key MOFA personnel are actively involved

-

MOFA communications with the Bank

-

Analysis of constraints and opportunities is carried out in a collaborative manner

-

National and provincial officials are willing and able to cooperate

-

Formal consultations with herders and other stakeholders are held

-

Herders in the two selected provinces are willing and able to cooperate

-

Workshop findings are integrated

8

Design Summary

4.

Inputs º

Detail a program of simple investments

º

Detail TA requirements

º

19 person-months of international consulting services: - Livestock economist (8 person-months) - Environmental management specialist (5 person-months) - Rural sociologist (6 person-months)

Project Monitoring Mechanisms

Risks/Assumptions

Activities

4.1 Information base on extensive livestock sector capacities: - Substantiate data accuracy - Identify and collect primary indicators of environmental capacity, i.e., soils, land use, numbers and diversity of species - Identify and collect secondary indicators that measure the economic activities causing changes in the primary indicators, i.e., fodder production, livestock density - Assess the carrying capacity of rangelands - Delineate the salient characteristics of the extensive livestock sector - Suggest ways to institutionalize the information base 4.2 Extensive livestock sector constraints and opportunities: - Structure the problem - Identify the groups of people involved in the extensive livestock sector - Consult herders and other stakeholders - Identify the determinants of herd size - Review the technical,

-

No delay in recruitment of consultants

-

No delay in appointment of counterpart staff

-

Experienced counterpart staff are assigned on a fulltime basis

12 person-months of domestic consulting services: - Livestock specialist (9 person-months) - Regulatory law specialist (3 person-months)

-

Team leader effectively manages team members and coordinates activities

-

Activities are carried out on a collaborative basis

º

8 person-months of short-term domestic consulting services

-

Data on primary and secondary indicators are available

º

Workshops at TA inception and completion

-

Formal consultations with herders and other stakeholders are held

-

Herders in the two selected provinces are willing and able to cooperate

º

-

Inception and final reports

-

Workshop findings

-

TA review missions

-

Tripartite meetings

-

MOFA communications with the Bank

9

Design Summary

Inputs

socioeconomic, and marketing factors governing extensive livestock production - Study sector performance indicators, analyze shortfalls, and distinguish the factors underpinning performance 4.3 Policy framework for sustainable management: - Identify voluntary mechanisms, regulations, direct Government expenditure, financial incentives, and institutional improvements 4.4 Strategy for policy framework implementation: - Define the strategic agenda and roles of concerned institutions and stakeholders - Detail and prioritize a program of policy interventions - Detail, quantify, and prioritize a program of simple investments and TA requirements

Total Cost: $615,000

Project Monitoring Mechanisms

Risks/Assumptions

10 COST ESTIMATES AND FINANCING PLAN ($)

Item A.

B.

Bank Financing 1.

Consultants a.

Remuneration i.

International Consultants ii.

Domestic Consultants b.

Per Diem i.

International Consultants ii.

Domestic Consultants c.

Travel i.

International ii.

Local iii. Shipping and Excess Baggage d.

Reports and Communications 2.

Workshops 3.

Miscellaneous Administration and Support Costs 4.

Representative for Contract Negotiations 5.

Translation and Interpretation 6.

Contingencies Subtotal (A) Government Financing 1.

Office Facilities and Administrative Support Expenses 2.

Remuneration and Per Diem of Counterpart Staff Subtotal (B) Total

- = magnitude zero.

Source: Staff estimates.

Foreign Local Exchange Currency

Total Cost

342,000 -

26,000

342,000 26,000

66,000 -

9,000

66,000 9,000

30,000 -

30,000 6,000 5,000 6,000

30,000 30,000 6,000 5,000 6,000

45,000 483,000

9,000 5,000 10,000 11,000 117,000

9,000 5,000 10,000 56,000 600,000

-

5,000

5,000

-

10,000 15,000 132,000

10,000 15,000 615,000

0 483,000

11 TERMS OF REFERENCE FOR CONSULTING SERVICES 1.

The terms of reference of the consultants will include the following tasks: (i)

Review available studies and reports on agriculture in Mongolia, focusing on the natural resources and macroeconomic setting, the role of agriculture in the economy, the institutional framework, relevant policy issues, statistical data, development constraints and opportunities, and current strategies for the development of the sector.

(ii)

Review available studies and reports on extensive livestock production systems in Mongolia, focusing on developments over the last five years to explain changes in livestock numbers. Substantiate the accuracy of the data. Ascertain the main parameters for investigation, and collect and analyze data relevant to an understanding of these systems. The analysis should cover the economics of extensive livestock production and all aspects of the livestock market.

(iii)

Conduct discussions with concerned institutions at the national and provincial levels to assess current policies and strategies for the extensive livestock sector.

(iv)

Identify and collect primary indicators of environmental capacity, such as those on soils, forests, land use, numbers and diversity of species, and coverage and stability of habitats, in consultation with the Ministry of Nature and Environment (MNE). Identify and collect secondary indicators measuring the economic activities causing changes in the primary indicators, such as farming patterns, deforestation and reforestation, and resource exploitation. Recommend ways to institutionalize this information base for continued use by the Ministry of Food and Agriculture (MOFA) and the MNE.

(v)

Assess the effectiveness of existing policies, laws, decrees, regulations, and circulars pertaining to the extensive livestock sector and regulations governing land, grazing, and water rights; and identify shortcomings.

(vi)

Examine and evaluate the efficiency and effectiveness of concerned institutions at the macro and micro levels. Verify that the scale and the orientation of the institutions are appropriate.

(vii)

Ascertain the status of ongoing projects related to the extensive livestock sector.

Review early findings from these projects and incorporate lessons learned into the technical assistance (TA).

(viii)

Identify the groups of people who are now, or who in the future may be, involved in the extensive livestock sector. Analyze their roles, rights, responsibilities, motivations, and aspirations.

(ix)

Determine the requirements for short-term domestic expertise in consultation with the Government and submit proposals to the Bank for concurrence.

(x)

Identify two provinces from the five major agroecological regions (HangaiKhuvsgul, Selenge-Onon, Altai, Central and Eastern Steppe, and Gobi Desert regions) in consultation with the Government and the Bank. Meet with provincial government officials from the provinces selected and agree on representative localities for detailed study. For each locality, carry out rapid rural appraisal with

12 the participation of the community to identify, among others (a) socioeconomic structures and working group relationships; (b) land, grazing, and water rights; (c) patterns of animal husbandry and movement, fodder production, and fodder and rangeland utilization; (d) the rationale for migratory patterns, both within and beyond the locality; (e) social support and service structures and their effectiveness, particularly at different stages of migration; (f) the role of prices in production and marketing; (g) the demand for livestock products; (h) livestock utilization and marketing practices; (i) access to credit; (j) approaches to risk management; (k) physical and social constraints on production, movement, and marketing; (l) availability of technical support services, including veterinary care, disease control, and genetic improvement; (m) processing; (n) research and extension requirements; (o) the institutional, administrative, and legislative environment; (p) the type of institutional support needed from the Government; (q) recent innovations and changes in livestock management practices; (r) the perceptions of herders on the key issues and constraints they face; (s) the motivations and aspirations of herders as well as their responses to existing laws and regulations governing access to rangelands; and (t) the current environmental status of the locality and the prospects for sustainable management of extensive livestock production systems. (xi)

Assess, with due regard for the perceptions of herders, the carrying capacity of rangelands in the provinces selected. Investigate the socioeconomic reasons for the degradation of rangelands, including policies on land, grazing, and water rights.

(xii)

Examine the changes that have taken place within the extensive livestock sector in the provinces selected in terms of adjustment to changing production, market and environmental characteristics. Estimate the changes in income and living standards and the impact of those changes. Identify the factors that lie within the control of herders and those that lie outside their control.

(xiii)

Analyze the changes that have taken place in pastoral institutions at the herding camp and neighborhood levels in the provinces selected during collectivization (1950s-1980s) and contemporary decollectivization (1990s). Examine the dynamics of these institutions and organizations and their interrelationships over time. Identify collective action approaches that would allow herders to reshape local institutional structures in such a way as to allow them to operate productively and sustainably in a market economy.

(xiv)

Examine the perceptions of herders with regard to the discontinuation of the State Emergency Fodder Fund (SEFF) and similar emergency and risk-avoidance mechanisms. Assess the impact of the discontinuation of the SEFF under the Bank’s Agriculture Sector Program Loan.

(xv)

Recommend, based on investigations and experimentations carried out by research institutions in similar ecosystems of Mongolia, approaches for creating or strengthening self-regulating, locally based rangeland management systems

13 that correspond to direct-user groups, and appropriate techniques for renovating rangelands. Recommendations will discuss the appropriateness, relative advantages and ecological impacts of techniques such as introduction of indigenous and exotic forage plants, reseeding, key-line farming, planting fodder trees and shrubs, soil and water conservation, natural regeneration of vegetation by grazing and browsing control, fencing to regulate use, dune stabilization, and eradication and control of undesirable plants. Consider the acceptance to herders of the new ideas embodied in these innovations. Assess the extent of collective action required to initiate and maintain these improvements. (xvi)

Recommend, based on the foregoing analyses, appropriate changes in policies, approaches, and enforcement mechanisms needed at the national and provincial levels for sustainable management of extensive livestock production systems.

Explain the economic implications of the changes recommended.

(xvii)

Define, based on formal consultations, the strategic agenda and roles of concerned institutions and stakeholders.

(xviii) Assist the Government in formulating a strategy for sustainable management of extensive livestock production systems based on the foregoing analyses. Detail and justify a program of policy interventions, simple investments and TA requirements.

2.

The consultants will assist MOFA in conducting two workshops. The first workshop will be conducted early in the first phase to promote participation at all levels and determine the limits of the study. A second workshop will be conducted towards the end of the second phase to present findings and elicit further feedback. The two workshops will coincide with, respectively, tripartite meetings for TA inception and completion held among the consultants, the Government, and the Bank. At each workshop, the consultants will provide concise reports for discussion. These will be revised and submitted to the Government and the Bank for approval at the conclusion of the workshop. A final report incorporating comments from the Government, workshop participants, and the Bank will be submitted within one month of the second workshop.